Wincanton PLC
10 October 2005
Immediate Release 10 October 2005
Wincanton plc
Acquisition
French acquisition strengthens Wincanton plc's European leadership
Wincanton plc ('Wincanton') announces significant further progress in the
development of its position as one of the leading European providers of supply
chain management services.
Wincanton is acquiring the principal French operations of Premium Logistics
('Premium') for an initial debt-free consideration of approximately €24m. Up to
a further €6m may be payable subject to the financial performance of Premium in
the year to 31 December 2005. As part of the transaction, Wincanton is also
acquiring for an additional €7.5m certain assets currently leased to Premium by
the vendor. The acquisition will be financed from Wincanton's existing borrowing
facilities.
In the twelve months to 30 June 2005, Premium reported, on a pro-forma basis,
turnover of approximately €100m, EBIT of approximately €4.0m and EBITDA of
approximately €6.5m. Net assets at 30 September 2005 were approximately €11m.
The acquisition, when combined with Wincanton's existing Strasbourg-based
activities, gives Wincanton national coverage of the important French market, an
enhanced portfolio of customer contracts and further strength and depth of
management resource. Pro-forma annual turnover of the enlarged French business,
which will operate from 29 sites across France, is expected to be approximately
€150 million. This represents a substantially stronger and broader business base
from which Wincanton can serve both the French and cross-border requirements of
its portfolio of blue-chip customers.
Premium's customers operate predominantly in sectors in which Wincanton has a
strong track record and acknowledged expertise. Its contract base includes
multinational FMCG companies, leading retailers of grocery, DIY and home
furnishing products and major manufacturers of automotive, chemical and
lubricant products. Its service offering is focused principally on warehouse
management and, although it also manages customers' fleet requirements, it has
no transport operations of its own.
Paul Bateman, Wincanton's Chief Executive, commented;
'This acquisition significantly strengthens our operational capabilities and
customer portfolio in the important French market.
It reinforces our commitment to our strategy of combining leadership in national
markets with strong cross-border, regional and Pan-European capabilities.'
Wincanton plc
Charles Carr, Group Communications Director 01249 710 763
Buchanan Communications
Charles Ryland/ Jeremy Garcia 020 7466 5000
Notes to editor
About Premium
Wincanton is acquiring the principal French operations of Premium Logistics
(Premium) for an initial debt-free consideration of approximately €24m. Premium
has 21 sites, employs c. 900 people and operates in a number of market sectors,
including DIY and home furnishing retail, FMCG/food manufacturers, automotive,
lubricant and chemical manufacturers and grocery retailers.
This information is provided by RNS
The company news service from the London Stock Exchange
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